NITI Aayog Launches 5th Edition of ‘Trade Watch Quarterly’ Report

Current Context: The 5th edition of Trade Watch Quarterly (TWQ) was released on 6 January 2026 in New Delhi by Dr. Arvind Virmani, Member of NITI Aayog.

• It covers Q1 of FY 2025–26 (April–June 2025) and highlights India’s shifting trade landscape.
• The thematic focus is on automotive exports, seen as a key driver of growth and jobs.
• India’s auto exports stood at USD 30 billion (1.4% of global USD 2.2 trillion market), with auto components doubling to USD 16.9 billion and strong gains in motorcycles and tractors.
• EV exports rose from USD 1.2 million (2020) → USD 84 million (2024), but remain just 0.1% of the global market, showing huge growth potential.
• Trade data (Q1 FY26): Total trade USD 439 bn (+3.5–3.7%), services exports USD 97 bn (+10%), merchandise exports USD 112 bn (–2.1%), combined deficit USD 21 bn.
• Recommendations: Tariff rationalization, product reorientation, stronger quality standards, and market diversification to boost competitiveness.

Question:

Q.1 According to the Trade Watch Quarterly (TWQ) – 5th Edition, India’s total trade in Q1 FY26 was approximately:
a) USD 390 billion
b) USD 415 billion
c) USD 439 billion
d) USD 480 billion

Answer: c) Total trade stood at USD 439 billion.